S&P 500 Riding Above Long Term Keltner Channel Structure

technical chart lookCorey Rosenbloom: Following up from prior research “Research on Buying or Fading Breakouts from the Keltner Channel,” let’s take a different perspective and view the S&P 500 from the perspective of a longer-term Keltner Channel indicator.

Here’s the S&P 500 with an expanded Keltner Channel (ATR) Band:

S&P 500 SPX SPY Keltner Channel Daily Stock Market Chart

While the standard Keltner Channel indicator calculates and displays two times the 14 (or 20) period “average true range” (ATR) and plots the result above and beneath the 14 (or 20) period mean (average), it’s helpful to view additional values beyond the default calculations.

The customized Keltner Channel indicator above calculates the 100 day average and plots six times the daily Average True Range (ATR) value.  The indicator is similar to the popular Bollinger Band indicator which calculates then plots the Standard Deviation as opposed to the ATR value.

Calculation aside, we see the longer term expanded Keltner Channel with respect to the price movement from 2012 to present.

Pages: 1 2

Leave a Reply

Your email address will not be published. Required fields are marked *